This article first appeared in The Edge Financial Daily on August 16, 2018

KUALA LUMPUR: Public Bank Bhd’s net profit for the second quarter ended June 30, 2018 (2QFY18) rose 4.8% to RM1.4 billion from RM1.33 billion a year ago, on higher net interest income, higher income from Islamic banking business, lower loan impairment allowance and higher net fee and commission income.

This were partially offset by lower investment and other operating income.

Public Bank also posted a higher earnings per share of 36.13 sen for 2QFY18 compared with 34.49 sen for 2QFY17.

Quarterly revenue increased 5.2% to RM5.44 billion from RM5.17 billion in 2QFY17.

The group also declared a first interim dividend of 32 sen per share, amounting to RM1.24 billion, for the financial year ending Dec 31, 2018 (FY18), payable on Sept 19.

For the cumulative six months (1HFY18), the group’s net profit grew 8.6% to RM2.8 billion from RM2.58 billion a year ago, while revenue was up 5.8% to RM10.79 billion from RM10.2 billion in 1HFY17.

In a statement yesterday, Public Bank founder and chairman, Tan Sri Dr Teh Hong Piow, attributed the higher profit for 1HFY18 to growth in its loan and deposit business, with further impetus from a 4.9% growth in non-interest income.

Gross loans grew 4.1% to RM310.7 billion as at June 30, 2018, compared with RM298.5 billion a year ago, mainly driven by growth in property financing, lending to small and medium enterprises and corporate lending.

Total deposits from customers increased by 4% to RM329.9 billion, which partly contributed to the higher net interest income for 1HFY18.

The group’s gross impaired loan ratio continued to remain stable at 0.5% as at June 30, 2018.

On prospects for 2018, Teh said, the group will continue to build on its strengths to further develop its business and sustain its market position.

“The group will continue to focus on sustaining its operational excellence and efficiency, adopt prudent and responsible financing practices, while upholding strong corporate governance and compliance culture, as well as sound risk management practices,” he added.

Public Bank also said it remains committed to expand organically and strengthen its regional presence, while leveraging on its strong PB brand and prudent management practices in driving its business.